On 3 July, the European Commission has adopted a Communication on ensuring efficient, safe and sound derivatives markets. The Communication outlines four ways to strengthen the safety of derivatives markets: standardisation, central data repositories, central counterparty clearing and trade execution on public trading venues.
Eurex supports the EU Commission’s Communication that derivatives play an important role in the economy and market organization needs to be safe and of highest integrity. The financial crisis has highlighted that systemic risk is not sufficiently mitigated in the OTC part of the market. We regard the ways outlined in the Commission’s Communication both as appropriate and as effective to strengthen the safety and integrity of derivatives markets.
Eurex actively contributes to market safety and integrity with state-of-the-art market infrastructure both in trading and clearing services as well as Eurex Clearing’s leading risk management processes for the derivatives industry. Especially central counterparty clearing is a stabilizing element for financial markets, together with effective risk management services it reduces systemic risk, improves transparency and operational efficiency. Eurex and Eurex Clearing are looking forward to continue our discussions with all relevant stakeholders. We will actively participate in the Communication’s consultation process to contribute our perspective and expertise as the world’s largest derivatives exchange and the leading clearing house in Europe.